The Trump administration is reportedly negotiating a deal with Taiwan that could see fresh investment and U.S. workforce training in semiconductor manufacturing and other advanced industries, according to sources familiar with the discussions. Under the proposed arrangement, Taiwanese companies including TSMC, the world’s largest contract chipmaker, would commit capital and personnel to expand operations in the United States and train American workers.
Taiwanese exports to the U.S. currently face a 20% tariff, and officials from Taipei have been in discussions with Washington to reduce the figure as part of a broader trade agreement. Semiconductors, critical to high-tech industries, remain exempt from tariffs while the U.S. seeks to build domestic production capacity.
According to one source, the total investment from Taiwan would be smaller than pledges from regional rivals such as South Korea and Japan, which have committed $350 billion and $550 billion, respectively, in exchange for reduced tariffs on most goods. Taiwan’s investment is expected to support the development of science park infrastructure in the U.S., drawing on its decades of experience in building integrated semiconductor clusters.
Details of the agreement, including timing and specific terms, remain under negotiation, with sources cautioning that arrangements could change until finalization. The workforce training component of the deal has not previously been reported. A White House spokesman, Kush Desai, said, “Until announced by President Trump, reporting about potential trade deals is speculation.”
TSMC has previously highlighted challenges in establishing U.S. operations. CEO C.C. Wei noted in January that building a new factory in Arizona has taken longer than similar projects in Taiwan, citing shortages of skilled labor and supply chain gaps. The company has brought in construction workers from Texas to assist with the project, increasing costs.
Taiwan’s Office of Trade Negotiations said its team continues to discuss supply chain cooperation with the U.S. under what officials call the “Taiwan model,” referring to decades of experience in developing integrated science parks and semiconductor clusters. Premier Cho Jung-tai said the two sides are exchanging documents to firm up certain details and stressed that Taiwan’s expertise in science park management gives it a unique advantage.
Vice Premier Cheng Li-chiun, leading trade discussions with the U.S., said last month that both sides are hopeful a consensus can be reached on expanding investment in American facilities. While Taipei has expressed commitment to boosting U.S. manufacturing, it has also stressed that its most advanced semiconductor technologies and research will remain in Taiwan.
Trump has previously acknowledged the need for skilled foreign workers to train Americans in cutting-edge facilities. In a recent U.S.-Saudi investment forum speech, he noted that successful operations in key industries would require the temporary presence of foreign experts, including those from Taiwan.
Taiwanese business leaders have also expressed interest in supporting U.S. science parks. Young Liu, chairman of Foxconn, said the company is exploring collaboration with the U.S. and other countries to build such facilities, potentially aiding trade negotiations.
Rising U.S. tariffs prompted the discussions. In August, Trump announced a plan to impose a roughly 100% tariff on imported semiconductors, exempting companies producing in the U.S. or committing to do so, including TSMC. U.S. officials have suggested tariffs may not be immediately levied.
Any agreement with Taiwan could raise tensions with Beijing. Chinese President Xi Jinping reportedly emphasized the importance of Taiwan’s “return to China” in a call with Trump. While the U.S. does not maintain formal diplomatic relations with Taiwan, it remains the island’s most important international backer and security guarantor.
